When Cash Is No Good…

I’ve written about this before, but I see this issue every week. …so, I wanted to touch on this again in an effort to make your next home purchase easier.

Using cash for a down payment on a home is very difficult to pull off.

If you have cash saved up for a down payment on a home – and you were planning on using it for a down payment – it will present a problem when it comes time to getting a mortgage.

The mortgage world is all about documentation.

…The guidelines on cash are designed to prevent the seller from giving you the down payment.

So, if you have a down payment – you will have to show where it came from… …checking = good, …savings = good, …gift from relative (fha/va/usda) = good, …retirement account = good, …cash = NO GOOD.

The best solution for this?… Put the cash in the bank. …Leave it there for 60 days. …After 60 days sitting in the account – it doesn’t matter where it came from.

That’s it for today!

Have a good day today!  …and thanks for reading.

Brett
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